The first is that the scheme will make available and accessible cheap funds to small businesses thereby filling the gap that has been a serious source of lamentation by such target businesses.According to reports, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, stated that “small loans like N100,000, N200,000 and N500,000 at not more that 5% will be disbursed.” The amount will make it possible for the credit facility to be accessed by many small businesses. However, for the scheme to be successful, multiple challenges exist that must be overcome by the banks and the small businesses. Thus, to be able to make this scheme work, banks would need to improve their small credit management skills and practices. For the small businesses, the real challenge is discipline or diligent management of the credits. Many of the entrepreneurs have often complained of inability to access cheap funds to power their businesses.

Source: The Guardian January 24, 2018 03:11 UTC